Better Management Of Vacation Home Rentals Is The Answer For Local Communities

Rentl, the California based US prop-tech company that develops bespoke technology for managing holiday rental homes in South Lake Tahoe, Palm Springs and other vacation destinations, reveals that better management of vacation rentals is the answer for local communities in America that are currently considering banning vacation home rentals.

Rentl points to the fact that we increasingly live in a technological age and the vacation rental industry needs to make more use of this for the benefit of clients and the local communities where the vacation homes are based. It believes that many vacation rental home managers do not carry out sufficient due diligence on potential clients and that there are many steps vacation rental managers can take to ensure their rental clients are behaving appropriately.

Better Management Of Vacation Home Rentals Is The Answer For Local Communities In America Considering Bans

Many opponents to holiday rentals are overstating the impact of “poor quality” tenants, and also how common this problem is

Local governments across America that are currently considering banning vacation home rentals should avoid this and instead focus on improving the standards of managers looking after the properties, many of whom are doing a poor job by not running adequate checks on potential clients.

This is the view of Rentl, the California based US prop-tech company that develops bespoke technology for managing holiday rental homes in South Lake Tahoe, Palm Springs and other vacation destinations.

Scott Drexel, CEO, Rentl, said: “There are communities up and down the United States of America, such as South Lake Tahoe, voting on whether or not to ban vacation home rentals. Instead of outright bans, local governments should be focusing on how to improve standards among vacation rental managers.

“Many of these votes are being fuelled by opponents to holiday rentals – including hotel lobbyists – overstating the impact of “poor quality” tenants, and also how common this problem is. There is no doubt that a small minority of people renting vacation homes have damaged properties and caused problems in the local communities they are visiting, and this needs to be taken seriously and tackled. However, calling for a ban on holiday rentals is not the answer.”

Rentl points to the fact that we increasingly live in a technological age and the vacation rental industry needs to make more use of this for the benefit of clients and the local communities where the vacation homes are based.

It believes that many vacation rental home managers do not carry out sufficient due diligence on potential clients. More time needs to be spent on running proper checks on people to make sure they will respect the properties they are renting, and also the local communities they are visiting.

Rentl says there are many steps vacation rental managers can take to ensure their rental clients are behaving appropriately. For example, if a property is being rented out by two people, you can use technology in the home to pick up how many mobile devices are being used there. If there is a high number, it might suggest there is a party being held, and the property manager can investigate this and evict the clients if they have broken the terms of their agreement.

Scott Drexel said: “Before more local communities take the decision to ban vacation home rentals, they should first consider looking at ways to encourage owners to ensure they are using professional managers to look after their properties. If a greater focus was placed here, everyone would win. Local communities would continue to benefit from tourists spending their money with their businesses; local governments would gain tax revenue; homeowners will sleep easier at night knowing their investment is being properly looked after; and those renting can continue to enjoy their vacations when they want to, and in some of the most beautiful places in America.

“The answer to the problems highlighted by those opposed to vacation rental homes lies in improving standards amongst vacation rental managers, and not in banning the rental market.”

Author: Jacob WolinskyJacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and three kids in Passaic NJ. -
Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own 2.5 grams of Gold